One or two little mistakes in your underwriting, a miss on the walkthrough, and you will blow right through your profit and come out in negative. 

No negative action however ridiculous was not stifled, instead it was declared the system need conform to facilitate there whims however ridiculous. 

While I haven't personally experienced any negative impacts from this fraudulent listing, I'm concerned that it could mislead potential renters and cause them financial distress.

Would I buy the 5 homes with negative cash flow?

Just remember: most negative reviews are written by problematic tenants.

Tenant took photos and videos but nothing detailed - a single shot or two of a room from the entrance, so is saying fridge was fine, normal wear etc Next - If we are being nice and deducting ‘portions’ of the charges and tenant continues to grind away, or this goes to court, do the compromise and smaller amounts offered negate the full amounts that could have been charged

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Owning the property in an LLC and living in it as your primary residence would negate the value of the LLC.

But yes, for LTR you will be negative most likely.

Perhaps your rents are just higher, but I wouldn’t suggest getting into a negatively cash flowing property especially for your first one.